As a seasoned researcher with years of experience delving into the dynamic world of cryptocurrencies and blockchain technology, I can’t help but feel a mix of empathy and intrigue as yet another wave of headcount reductions sweeps through the industry. It’s not uncommon to witness such fluctuations in this nascent sector, where innovation and market conditions often dictate the ebb and flow of jobs.
The crypto industry is experiencing a significant wave of job cuts, with blockchain development firm ConsenSys being one of the companies undergoing restructuring. As a result, more than 20% of its workforce has been let go, impacting 162 employees. This reduction was confirmed by Joe Lubin, CEO of ConsenSys and co-founder of Ethereum, to CryptoMoon.
Kraken, a digital currency exchange, has recently downsized its team as well. It’s been reported that this reduction amounts to approximately 15% of the company’s total staff, which equates to nearly 400 individuals. Notably, Kraken had previously let go of employees in November 2022, amounting to around 30% or 1,100 people, also due to unfavorable market conditions.
The decentralized cryptocurrency exchange dYdX recently made the decision to let go of approximately 35% of its workforce. Its reinstated CEO, Antonio Juliano, has indicated that the company is in need of a fresh approach or new direction moving forward.
It’s been reported that Nova Labs, the organization responsible for Helium Mobile, recently let go of 36% of its employees. They did this to concentrate more on their primary cellular business, marking a shift in their focus.
In this week’s edition of Crypto Biz, we delve into several key topics including:
Coinbase shares drop after-hours on Q3 earnings miss
Shares of Coinbase Global dropped nearly 3.7% in after-hours trading on Oct. 30 as its third-quarter results for earnings and revenue came in below Wall Street estimates, with the crypto exchange blaming “softer market conditions.” Coinbase’s Q3 results saw revenue hit $1.13 billion, up 81% from the year-earlier quarter but missing Wall Street analysts’ forecasts of $1.26 billion by almost 11%. Its earnings per share came in at 28 cents, missing analyst expectations of 45 cents a share by 46.5%.
Reddit offloads most of its Bitcoin, Ether holdings
Reddit, as reported in a recent SEC filing, largely disposed of its cryptocurrency assets during the third quarter. The primary sales came from reserves in Bitcoin (BTC) and Ether (ETH). The document indicates that the earnings generated from these cryptocurrency transactions amounted to approximately $6.87 million for the period ending September 30th.
Kraken restructures with new co-CEO, layoffs reported
Kraken, a leading cryptocurrency exchange, announced significant changes, including the appointment of Arjun Sethi as co-CEO alongside David Ripley, and a restructuring of management roles. There’s been speculation that approximately 15% of the workforce has been let go, though this hasn’t been officially confirmed. Sethi is a co-founder and chairman at Tribe Capital, a Silicon Valley venture capital firm, and has served on Kraken’s board since 2021. Mike Isaac, a New York Times reporter, hinted at a possible workforce reduction of 15% in an X post, citing two anonymous sources with inside information about the decision.
Circle raises USDC cash-out fees, affecting large-scale redemptions
Stablecoin issuer Circle raised its fees for redeeming its USD Coin (USDC) for the second time in less than a year. According to an Oct. 29 Bloomberg report, the company has been collecting daily fees on redemptions of at least $2 million since September. In February, Circle introduced swap charges for redemptions above $15 million through its Circle Mint platform. The new fees begin at 0.03% per transaction and escalate to as much as 0.1% for withdrawals above $15 million, primarily affecting institutional investors and high-volume traders. The revision reportedly seeks to address increased demand for liquidity as more institutions tap into digital assets.
Before heading off: With the upcoming U.S. elections approaching, the topic of the digital dollar once again gains traction. How might central bank digital currencies (CBDC) and stablecoins influence the future economic landscape of America?
As a dedicated researcher delving into the realm of blockchain and cryptocurrency, every Thursday, I ensure you receive an insightful digest, Crypto Biz, straight to your mailbox. This weekly dispatch offers you the pulse on the business aspects of this dynamic industry.
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2024-11-02 00:09